Configuring a Tax Rule to collect Indirect Tax from your Customers and Sub-Resellers

Once you have understood what Indirect Tax is and how our Tax Engine can be used to collect the same from your Customers and Sub-Resellers, you can proceed adding a
Tax Rule for any Products/Services to which Tax is applicable:

To Configure a Tax Rule

In the Menu, point to Settings -> Finance & Billing and click Configure Tax Rules.

Review any existing Tax Rule that you may have created before and then click the Add New Tax Rule button to create a unique Tax Rule.

Fill in the following details and click the Proceed button:

Product Category: For each Product that you wish to tax your Customers/Sub-Resellers, you need to create a separate Tax Rule. In case you
wish to charge the same Tax for all Products, you would need to repeat these steps.

Percentage: This is amount in percentage that you wish to be charged over the Invoice amount to your Customers/Sub-Resellers.

Tax Label: This is the name of the Tax that will be shown to your Customers/Sub-Resellers in their Invoices.

Examples:

Sales Tax

VAT

Service Tax

Country: Select the Country here for which this Tax Rule needs to be applied. Select Any Country to apply this Rule to all
Customers/Sub-Resellers irrespective of their Country.

State: Select the State from the selected Country here. Select Any State to apply this Rule to all Customers/Sub-Resellers
irrespective of their State.

Time Zone: The Time Zone works in conjunction with your Tax Rule's Start and End Date. That is, a particular Tax Rule starts and end as per
the Time Zone you have selected.

Tax Start Date: This indicates the day when a particular Tax Rule would start from. Any Invoice prior to the Start Date would not be Taxable.
You may set the Start Date as either today or any day after that.

Tax End Date: This indicates the day when a particular Tax Rule would end. Any Invoice after the End Date would not be Taxed.
You may set the End Date as same as the Start Date or any day after that.

Invoice Footer: Here you should mention your Tax Registration Number or any other detail regarding this particular Tax Label,
to be displayed within Invoices to your Customers/Sub-Resellers to whom this Tax applies.

Note

The Invoice Footer is only displayed to your Customer/Sub-Reseller when he clicks the Print button in the Invoice Details view.

Exempted Reseller Ids: Here you may mention any Reseller Ids to whom you do not want this Tax to be applied. Typically, you may want to
do this for any Sub-Reseller account that you may have created for yourself.

Exempted Customer Ids: Here you may mention any Customer Ids to whom you do not want this Tax to be applied. Typically, you may want to
do this for any Customer account that you may have created for yourself.

Confirm that you have set the Tax Rule appropriately and then click the Confirm button. If you wish to tweak the Rule further, you may click the Modify button and
then proceed further. Clicking the Cancel button will abort this Rule's creation.

Upon confirming a particular Tax Rule, Tax would begin displaying to your Customers/Sub-Resellers for the selected Product from the Start Date.

Effect of a Tax Rule on Transactions

Effect of a Tax Rule while Adding an Invoice

Each time an Invoice is raised, the system will check if there is a matching active Tax Rule. If there is a matching Tax Rule, then the Tax amount is calculated and stored alongwith the Invoice
amount.

The Invoice payable by your Customers/Sub-Resellers would be inclusive of the Tax amount.